Reliance Retail has commenced the integration of its JioMart business-to-business (B2B) vertical with the recently acquired METRO Cash & Carry India operations. To avoid redundancy, the company has taken the decision to close certain warehouses, as per insider information. Alongside this consolidation, the company has reportedly made some staff reductions across its retail divisions, with certain employees placed on a performance improvement process.
While the exact number of affected employees remains undisclosed, sources suggest that these appraisals or exits may not be limited to the B2B segment alone, but may span across the entire retail business. It is worth noting that these employees constitute only a fraction of Reliance Retail's extensive workforce of 400,000 employees. The majority of those asked to leave are believed to be from the sales team.
Reliance Retail aims to serve small merchants effectively and has aligned the JioMart B2B business with its overall operations following the acquisition of METRO Cash & Carry India. This strategic move is aimed at preventing overlap and ensuring that both entities do not serve the same kiranas (small retailers) and small merchants through separate channels. By consolidating operations, the company aims to enhance business development, improve operational efficiencies, and expedite speed to market.
Reliance Retail's objective is to expand its market leadership in India's B2B sector. The company plans to achieve this by adding new wholesale channels and expanding its delivery network through the onboarding of new merchants on eB2B. By leveraging the combined capabilities of both businesses, Reliance Retail seeks to reach more kiranas and small merchants across India, empowering them through digital solutions and deepening its presence in this segment.
The acquisition of METRO Cash & Carry India, which received all necessary clearances and was completed in March, provides Reliance Retail with access to a vast network of METRO India stores in key cities, a substantial base of registered mom-and-pop stores (kiranas), institutional customers, and an extensive supplier network. METRO Cash and Carry India serves over 3 million B2B customers in India, with 1 million frequently purchasing customers, leveraging its store network and eB2B application.
Reliance Retail has been actively expanding its presence in the fast-moving consumer goods market, relaunching brands like Campa Cola and introducing its own offerings in the home and personal care space.
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